This conversation delves into the complexities of wealth-building in the 21st century, emphasising the importance of a strategic approach to financial independence. It unpacks the Seven Pillars of Wealth, explores the move from individual effort to collaborative wealth creation, and underlines the vital role of financial education. The discussion also reflects on the challenges facing today’s generation and provides actionable insights to help listeners build lasting wealth and achieve true financial freedom.
In this week’s episode, we take a new approach—using AI to debate and unpack Kevin Whelan’s “The 7 Pillars of Wealth: Your Guide to Complete Financial Independence in the 21st Century.” Drawing on the WealthBuilders philosophy, we explore the actionable blueprint for building lasting wealth, why the old rules no longer work, and how anyone can start their journey to financial independence—regardless of their starting point.
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Speaker 2 (00:00.056)
All this brings us to a kind of paradox, doesn't it? It is the best and worst of times. On one hand, it's never been easier to access information, tools, technology to build wealth. The opportunities are there. But conversely, it's never been harder if you don't know how.
People often ask, how do you even start if you've got no money? Or maybe is it too late for me? And the answer was really clear. It is never too late. And with the right approach, the right commitment, you can potentially reach financial independence in as little as five years. It's about deciding to start now.
Speaker 3 (00:31.246)
Hello and welcome to this week's episode of WealthTalk. My name is Christian Rodwell, the Membership Director for WealthBuilders. Now, so that Kevin and I can enjoy a week off for a short summer break, we thought we'd bring you something a little different this week. Now, we often talk about the importance of leverage when it comes to building wealth, and one form of leverage is software. And we've been playing around with one of Google's AI tools called Notebook LM.
and generated a bit of a debate around Kevin's book, The Seven Pillars of Wealth. Now we don't have control over the accents, so it's a mostly American narrative today. However, this gives us a chance to acknowledge all of our listeners from the US, our second largest territory for podcast downloads behind the UK. So hello to all of you. In today's deep dive, you'll gain a great insight into the WealthBuilders methodology from top to bottom. Understand how important it is to have a strong foundation
and a watertight roof strengthened by The Seven Pillars of Wealth in the middle, Your Complete Blueprint for Financial Independence in the 21st Century. And if you'd like to download a free copy of Kevin's book, simply head to www.wealthbuilders.co.uk forward slash book or click the link in today's show notes. Okay, let's head over to our friends across the pond and hear what they have to say.
Welcome to the deep dive. We're here to cut through all the noise, sift through the data, and give you that crucial understanding you need, well, fast. Think of us as your shortcut to being genuinely clued in. Today, we're tackling something, honestly, pretty transformative. A blueprint for complete financial independence, specifically for the 21st century. And look, this isn't just about piles of cash. It's really about designing a life, a life that's accessible and actually applicable no matter where you're starting from.
That's exactly right. The material we're drawing on today comes from some really compelling excerpts from the WealthBuilders ebook. It was originally written by Kevin Whelan, narrated by Alex McKee. And this isn't just philosophy. It lays out a very specific, really actionable process for building wealth. It's a path, surprisingly structured, and crucially, you can repeat it.
Speaker 2 (02:45.624)
Okay, so our mission for this deep dive is to really unpack that blueprint. We're gonna uncover some insights that honestly might challenge what you thought you knew about money, about finance. It reveals a new paradigm really for building true wealth in, let's face it, today's pretty complex world. So get ready for some aha moments and definitely some practical takeaways you can use right away. So where do we kick this off? Kevin Whelan introduces his blueprint using this powerful analogy like the Pantheon.
a solid foundation, seven strong pillars, and then a protective roof over it all. So that's eight major areas to focus on. And the core idea, the sort of guiding principle behind it all, is remarkably simple. Never let a month go by without building wealth. But what does that actually mean day to day?
It means every single financial decision, whether it's big or small, it needs to be pointed towards growth. It has to build something. And that foundation you mentioned is absolutely critical. Kevin calls it becoming financially smart and it breaks down into four key areas. First, being debt smart. Now this isn't just avoid all debt. It's about understanding how to manage it. So it either serves a very specific wealth building purpose or actually more often being completely debt free. Because honestly, that usually offers the best return on investment. Simple as that.
Then there's being tax smart. So many people just, well, they glaze over this bit, but there's a tax overlay on every single asset you build. Every one. Understanding how to use tax advantageously, legally, of course, is just fundamental financial intelligence. You can't ignore it. Next up, being bill smart. Okay, this might sound a bit minor, but in today's really competitive markets, a little bit of effort here, can lead to pretty significant ongoing savings on your regular bills. And that frees up capital you can then use directly for, well, building more wealth. Finally,
being sure smart.
Speaker 1 (04:27.458)
This is about ensuring that wherever you are on your journey, your whole financial plan is secured, protected against the unexpected. Think of it like protecting your growing garden from a sudden frost.
Got it. So the foundation is smart management, getting the basics right. And the roof then, that sounds like making sure it all lasts, protecting it for the future.
Precisely. Kevin wraps this protective part up with what he calls the three L's. First is legal. This covers all that necessary paperwork, your will, understanding exactly how assets are owned, maybe setting up trusts. It's all designed to make managing your estate much easier, much smoother for your loved ones down the line. Second is legacy. This tackles head on how your wealth gets passed on to the causes you care about, the people you love. It's not just money, it's about your intent, your purpose.
And the third L, maybe the most profound, is legend. This is really about the lasting contribution you make, passing on not just the money, but the financial wisdom itself. This helps avoid that historical pattern, you where generational wealth just gets wasted. The goal is bigger, to build a dynasty of ethical wealth builders. And what's really interesting now in our digital age, with intellectual property and easy communication, it's never actually been easier to pass on your wisdom, your principles, to really shape your own legend.
Okay, so we have the solid foundation, we have the protective roof. Now, let's get to the heart of it owning assets. These are what Kevin calls the seven and only seven pillars. It's almost a relief, isn't it? Only seven. Gives you something clear to aim for.
Speaker 5 (05:55.726)
provide focus and each pillar, yeah, it has its own unique angle or often a common misunderstanding that really needs clearing up. The first is home equity. Now, most people think of their home as well, it's a liability, right? Until they sell it or maybe downsize much later in life. But Kevin's blueprint, it suggests that with the right strategy, your home can absolutely be a gold mine before retirement. Maybe by leveraging some equity strategically for other investments, turning that inert capital into something active. Then you got pensions.
These often don't get people excited, do they? But they're probably the most misunderstood or underutilized asset out there. What's fascinating here is that Kevin explores ways pensions can actually become the source of funding in the here and now, not just locked away for decades. That's a big shift. Next, investments. Especially with today's often volatile stock markets, the strategies Kevin talks about are pretty crucial. Protecting against loss, building confidence so stocks and shares are part of your plan. Then we have the property portfolio. This pillar really challenges you to think outside the box.
beyond just the standard buy-to-let approach. To aim for much higher returns on investment, maybe looking at commercial property or different rental strategies perhaps, things that give a different kind of yield. The fifth pillar is business. Now this might make you rethink any business you currently own. It's a vital reminder really. Business owners need to work on their business strategically, not just get buried working in it day to day. Because as Kevin puts it, there's potentially no higher return on investment than running your own business.
Pillar number six is intellectual property. This is all about monetizing your ideas, your expertise, realizing how much your own IP might be underperforming right now. Kevin shows ways you can get a higher return on investment from the same ideas you probably already have, just by structuring and leveraging them differently. It's smart. And finally, the seventh pillar. This one is often the keystone for many people, joint ventures. This really empowers you to work with others towards goals that benefit everyone involved.
It directly challenges that old outdated idea of the rugged individual from the 20th century.
Speaker 2 (07:53.932)
So why does Kesin argue that building wealth alone is basically impossible in the 21st century? Is it just that things are too complex now or is there more to it?
That's a really good question. It's not just complexity, although yeah, that's definitely part of it. It's more about the speed and the scale that collaboration offers. If you build wealth alone, you're totally limited by your own time, your own knowledge, your own capital. Joint ventures though, they let you share risk, combine different skills, access more capital, and just accelerate growth exponentially. It really underscores the absolute importance of building relationships based on trust and structuring probably win-win agreements. It's fundamental now.
that is a huge shift in thinking right there, from solo effort to collaborative power. And speaking of fundamentals, let's get crystal clear on definitions. When we say wealth, the noun, the dictionary defines it as an abundance of valuable possessions or money, the state of being rich, an abundance or profusion of something desirable. And a builder, also unknown, is a person who constructs by putting parts or materials together, a person able to take a resource and increase it over time.
a person who uses a resource as a basis for further progress.
But the source material offers a really unique definition of a wealth builder. It says it's a person of high integrity, committed to financial independence through sharing with like-minded people, and who leaves a great legacy. See, it's not just about accumulating, it's about the integrity, the sharing, the legacy, that's key. And the author, Kevin, he shares his own incredibly powerful catalyst story. Back in 1985, when he was just 25, his father died tragically young, only 46, and he left the family in debt with no will.
Speaker 1 (09:30.68)
That profound, painful event basically spurred Kevin to completely change his own financial path.
That really brings home the difference between, say, work income, which is basically trading your time for money, right? It stops. When you stop working, you can't pass it on. And asset income, that's the goal. It comes from your assets, flows in while you sleep. It's permanent, relatively speaking, and you absolutely can pass it on. So in this context, a catalyst is defined as a person or thing that precipitates an event. It sparks the change.
And Kevin's definition of an asset is also quite unique and really worth hearing properly. He says it's something you own that is not you. It puts money into your bank account while you are asleep and you can pass that money on to the people you care about or good causes. It does not end because you are not there. He boils it right down to a simple formula. Assets build cashflow. ABC. Simple, powerful.
And it's incredible that Kevin then went on to achieve his own financial independence by age 45, just one year younger than his father was when he died. That personal achievement must have really fueled his mission, his new role as an accelerator for others sharing what he learned.
Absolutely, and that leads us to probably the most vital question for you listening right now. What's your why? Because without a huge why, a really powerful, deeply personal reason, people just find excuses to quit when things get tough, and they will get tough sometimes. That driving purpose, that's your catalyst. It's what you hold onto when the journey feels, you challenging.
Speaker 2 (10:59.598)
Okay, so let's zoom out a bit, put this in historical context. Building wealth hasn't always looked the same, has it? The material we're looking at outlines three really dramatic shifts in how wealth is created and held. First, you had the Industrial Revolution. That was a massive shift, wealth moving from the landed gentry over to the industrialists. Then came the Social Revolution. Wealth started to kind of percolate down from industrialists more towards individuals. This was the era of the job for life.
company pensions, state pensions. You didn't necessarily have to be super smart financially to get some security. But here's the stark truth from the source. Those days have gone. They're over. And now, now we're firmly in what's being called the community revolution. This is a fundamental shift away from individuals relying solely on big institutions, towards wealth builders working together collaboratively and taking direct control of their own financial futures.
And this context is absolutely critical because in the 21st century, our financial security has been hit by what the source calls a triple whammy. Three big blows. The first historic change. The stark demise of final salary pension schemes. For most people, they're just gone. This means the risk, the responsibility for your retirement income. It now falls entirely on you, the individual. The second punch. State pensions are no longer solid. They're being pushed back later and later retirement ages. And frankly, for most people, they just won't be enough to live on comfortably.
It's an issue of economics and demographics colliding. the third, knockout punch. Annuity rates are at their lowest in history, often 5 % or even less now. Compare that to, 15 % back in 1990. This means your pension pot, your savings, have to work three times as hard just to generate the same income. Kevin calls it the annuity trap. It's fundamentally reshaped retirement.
And the knock-on effect, especially for the next generation, is profound, isn't it? It's genuinely shocking to hear that for the first time in history, the next generation is projected to be poorer than the current one. You've got students starting their careers with often over 50,000 pounds of debt. That's a huge weight from day one. Add in high youth unemployment, the explosion of payday loan companies. It's, a pretty sad indicator of the nation's increasingly precarious relationship with debt.
Speaker 1 (13:07.598)
It just begs the question, doesn't it, why on earth don't they teach this stuff in schools? There's such an urgent need for practical financial education in four key areas, really. One, how to manage your finances, debt, budgeting, tax. Two, understanding that crucial difference between liabilities and assets. Three, learning how to actually create asset income. And four, knowing how to protect and eventually transfer those assets effectively. The source even coins a term, noidecute.
which means education backwards. For how we're often taught about borrowing, it makes borrowing seem normal, easy. But that ancient proverb, the borrower becomes the lender's slave, it's more relevant than ever. It highlights a power dynamic we often ignore.
It really does. And all this brings us to a kind of paradox, doesn't it? The source says, is the best and worst of times. On one hand, it's never been easier to access information, tools, technology to build wealth. The opportunities are there. But conversely, it's never been harder if you don't know how.
Yeah, and people often ask, how do you even start if you've got no money? Or maybe, is it too late for me? And the answer from this material is really clear. It is never too late. And with the right approach, the right commitment, you can potentially reach financial independence in as little as five years. It's about deciding to start now.
That's incredibly encouraging. And it all starts apparently with a switch. A conscious choice you make? There are only two options. Choosing liabilities or choosing assets. Nothing in between. There's even a practical technique mentioned, like a finger click anchor, to help make this distinction a habit. So every financial decision is made consciously. Because there are no neutrals every pound, every dollar you spend or invest is either moving you towards financial independence or further away from it. One or the other.
Speaker 1 (14:52.564)
Exactly. Think of your finances like a vehicle. A car getting you to where you want to go in life. Liabilities are the brake. They slow you down, hold you back. Assets. They're the accelerator. They propel you forward. No, course, celebrating progress, rewarding yourself appropriately. That's part of an abundance mindset. Nothing wrong with that. But irresponsible spending on liabilities, like, buying a massive new TV on credit when you're already drowning in debt. That's just not smart. It's slamming on the brakes when you need to be accelerating.
Which brings us neatly to what's called the Wealth Building Formula for success that looks like this. A-I-U-E equals E. So, asset income is equal to or greater than your expenditure equals a happy wealth builder. Simple smiley face and all, it's elegant, isn't it?
beautifully simple, yet profound. And if you keep trying to use those old 20th century methods, save a bit, hope the pension works out. In today's world, that's pretty much Einstein's definition of insanity, right? Doing the same thing over and over again and expecting different results.
financial rules have fundamentally changed. Sticking to old habits just won't get you where you want to go anymore.
Okay, so here's a big question for you listening What is your number? What amount of money coming in each month purely from your assets would allow you to live the life you truly want to live Nailing down that figure your personal financial independence number that's absolutely critical gives you a clear target to aim for and that number it connects to this broader idea of abundance Which is about way more than just income actually ask yourself if money was truly no object How would you live your life differently?
Speaker 1 (16:26.39)
It helps to think about four words. What would you have? How would you be as a person? What would you do with your time? And what would you give back to the world? It frames it nicely. And this journey towards abundance, it typically unfolds in three distinct stages. Each has its own target figure for asset income. Stage one is financial security. That's where your asset income covers your basic living expenses. You have some choices, but they're limited. Stage two is financial independence.
Now your asset income replaces your old work income. This opens up loads of new opportunities, lots more choices. And stage three is financial abundance. This is where your asset income far exceeds your expenses. Your pretty much unlimited choice and crucially, the capacity to help others on a much larger scale.
This whole framework really blows up that traditional retirement goal, doesn't it? That old two-thirds of final salary idea. For the kind of active, engaged retirements people want in the 21st century, two-thirds isn't more life. It's actually less is less. It's aiming too low if you want a vibrant future, not just scraping by.
Definitely and you know often the biggest obstacle people face on this journey. It's themselves. It's getting stuck in old habits
Yeah, it reminds me of the analogy used in the material of the Sinclair C5 car. those? Innovative for its time, maybe, but totally unsuited for today's fast-paced, multi-lane financial motorway. It was slow, isolating, only room for one person. And yet, metaphorically speaking, so many people are still trying to drive a C5 financial plan today. It just doesn't work for the journey ahead.
Speaker 1 (17:56.942)
That's a great analogy. And it helps explain the five C's that trap people. Apparently only one of these C's is actually good. Most people are consumed. Just too busy with their job or their business to think about their finances. That's a direct result of being stuck in that work income paradigm. This leads to having no capacity. You give all your best energy, your best thinking to your job, leaving nothing left for your own personal financial strategy. Then there's the increasing complexity of the financial world. Low annuity rates, volatile markets, low bank interest. You have to be more hands on now.
You can't just delegate it all and hope for the best. And the inevitable result of being consumed, lacking capacity and facing all this complexity, confusion. You just feel overwhelmed. And confused people, they tend to just say no or do nothing. The only positive C here is catalyst. That spark, that why we talked about, that has the power to break through the confusion and drive.
So it really boils down to needing a new you, doesn't it? You need to become proactive. You need a new vehicle, a financial plan that actually has space for partners, for mentors, and you need a clear new direction. It's about consciously taking the wheel.
Stephen Covey talked about finding your true north, aligning your actions with your core values and your overall strategy. Getting hooked into tactics, chasing the latest hot stock tip or property deal without that strategic compass just means you end up going faster in the wrong direction. Kevin defines four GPS points for finding true wealth. Financial abundance, the goal. True north, your values. Sharing, collaboration, and building a legacy, your contribution. These keep you on course.
That makes a lot of sense. But finding the right guide, the right mentor can be tricky, can't it? The financial world often seems structured in these silos, as the source calls them. You go to the bank for a loan, an IFA for investment products, maybe a property guru for property. It's all fragmented.
Speaker 1 (19:41.73)
This is precisely why the material argues so strongly for a new kind of mentor. Someone with a multi-pillar approach. Someone who can see the bigger picture, the interconnecting paths between all seven pillars. Because when you integrate them strategically, maybe use equity from your home to fund a business, or use business profits to build an investment portfolio, you don't just get steady growth, you get this compounding on compounding effect. The results become transformational, not just incremental.
it requires a both-and approach, the big strategic overview and specific expert knowledge for each pillar, so you can leverage each asset to build the others.
And without that bigger strategic plan, you run the risk of investing time and money in tactical stuff that maybe you're not ready for, or that doesn't actually fit your overall goals. It's like buying expensive engine parts without knowing what kind of car you're building.
Precisely. And this entire philosophy, this whole approach, it kind of culminates in something called the New Declaration of Financial Independence. It's a document that members of the WealthBuilders community actually sign. It outlines seven core values that really define what it means to be a wealth builder committed to this path. Number one, taking full responsibility for your own financial future, being hands-on, accountable. Two, conducting your life and your business with the highest integrity that's non-negotiable. Three,
Investing time in building lasting trust-based relationships. actively sharing your knowledge, your lessons learned, the good and the bad. Five, helping other like-minded people who are on the same journey. That collaborative spirit again. Six, keeping values circulating within the community, supporting each other. And finally, number seven, committing to passing on a legacy together with the principles and the wisdom needed to maintain it and hopefully expand.
Speaker 2 (21:22.606)
So there you have it. When you really break it down, wealth building isn't some mystical art or rocket science. It's more like an applied science. It requires a clear strategy, definitely the right mindset, and embracing that transformative power of community.
Absolutely, and look, despite all the challenges in today's economic landscape, and there are challenges for those who choose to be proactive, who choose to adopt these kinds of principles, there really are unprecedented opportunities to build genuine, lasting wealth. The tools and knowledge are more accessible than ever before.
So for you, our listener, let's end with a thought to really provoke some action. What's your how much, by when? What specific monthly asset income do you need to live the life you truly desire? And by what date will you commit to achieving it? What level of commitment are you really ready to invest in your own future? And what will your story of financial independence look like? Maybe consider which of the ideas we've unpacked today might just be your personal catalyst for taking that next step. Thank you for joining us on this deep dive into financial independence.
Speaker 2 (22:29.432)
We hope you enjoy today's episode. Don't forget that we are constantly updating our resources inside the WealthBuilders membership site to help you create, build and protect your wealth. Head over to wealthbuilders.co.uk Right now for free access.
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